First-time homebuyer share at record low, age at record high

First-time homebuyers dropped to an historic low of 21% of all purchasers in the past year, according to the National Association of Realtors’ (NAR) 2025 Profile of Home Buyers and Sellers.

Data was gathered from completed transactions between July 2024 and June 2025 and shows the nation’s housing market remains constrained by low inventory, high prices and limited affordability.

Before the 2008 housing crisis, first-time buyers typically made up 40% of the market. Now, with mortgage rates averaging 6% to 6.69% and home prices at record highs, new buyers are finding it increasingly difficult to make their mark.

The median age of first-time buyers rose to 40 — the highest ever recorded — compared with the late 20s median from the 1980s.

“The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “The share of first-time buyers in the market has contracted by 50% since 2007 — right before the Great Recession. The implications for the housing market are staggering. Today’s first-time buyers are building less housing wealth and will likely have fewer moves over a lifetime as a result.

“Unfolding in the housing market is a tale of two cities. We’re seeing buyers with significant housing equity making larger down payments and all-cash offers, while first-time buyers continue to struggle to enter the market.”

The report found that first-time buyers made a typical down payment of 10%, matching the highest share recorded since 1989.

Repeat buyers put down a median of 23%, the highest since 2003. Among all buyers, 30% paid cash — continuing an all-time high for all-cash purchases.

Overall, 92% of first-time buyers used financing compared with 70% of repeat buyers. The median share financed was 90% for first-time buyers and 77% for repeat buyers.

Among first-time buyers, 59% used personal savings and 26% drew from financial assets such as 401(k)s or stocks for their down payments.

Why people bought and sold

For 21% of all buyers, the main reason for purchasing was the desire to own a home of their own — a figure that jumped to 64% among first-time buyers.

Forty-five percent said the timing felt right, while 20% said they had little choice but to buy when they did.

Among sellers, the median tenure in their home reached an all-time high of 11 years, up from 10 last year. The typical seller age was 64, also a record.

Most cited moving closer to friends or family (26%) as their top reason for selling, followed by wanting a smaller or larger home (10% each).

Sellers received a median of 99% of their listing price, with homes spending a median of four weeks on the market. Ninety-one percent of sellers worked with an agent — the highest share to date — and for sale by owner transactions fell to an all-time low of 5%.

Despite affordability challenges, 79% of buyers said purchasing a home is a good financial investment, with 35% believing it is better than owning stocks.

Buyers still rely on agents

Eighty-eight percent of buyers purchased their homes through a real estate agent or broker, underscoring agents’ continued importance in the process.

Buyers most often sought help finding the right home (50%) and negotiating sale terms (13%). About 54% said their agent pointed out unnoticed property issues, and 76% of first-time buyers said agents helped them understand the process.

Most buyers found their agent through personal referrals — 43% overall and 49% of first-time buyers — and 91% said they would use their agent again or recommend them to others.

Aging buyers, changing demographics

The median age of all buyers climbed to 59, up from 56 the year before. Repeat buyers had a median age of 62 — also an all-time high.

Twenty-five percent of buyers were between ages 65 and 74, and 20% were between 55 and 64.

Married couples continued to dominate the market, making up 61% of all buyers. Single women accounted for 21% and single men 9%.

The share of homebuyers with children under 18 fell to a record low of 24%. Meanwhile, 14% of buyers purchased multi-generational homes, often to care for aging parents (41%) or save on costs (29%).

Neighborhood and lifestyle shifts

Neighborhood preferences reflected changing lifestyles and demographics.

Quality of the neighborhood (59%) and proximity to friends and family (47%) ranked as top factors when choosing a home.

Convenience to one’s job dropped to 31% — down sharply from 52% in 2014 — even as return-to-office orders became more common between 2024 and 2025.

Forty-four percent of buyers purchased in suburbs or subdivisions, 24% in small towns, and 15% in rural areas.

The median distance moved was 20 miles, down from 50 miles in 2022 but still above pre-pandemic norms.

What buyers purchased

Detached single-family homes remained the most common type, representing 76% of purchases.

Buyers typically bought a 1,900-square-foot home with three bedrooms and two bathrooms. About 12% purchased new homes, while 88% bought previously owned properties.

The median year built of homes purchased was 1994.

Buyers expected to live in their homes a median of 15 years, with 28% saying they would never move. Among those over 60, 17% purchased senior-related housing, often in suburban areas.